It doesn’t matter whether you own your home or rent it, you need to protect yourself and your belongings. If you are renting and decide to purchase a home (or vice versa if you are downsizing), you will need to adjust your coverage. A renters policy and a homeowner’s insurance policy have differences that set them apart. Both of them protect you from financial loss but cover different types of property.
Similarities Between Renters Insurance and Homeowner’s Insurance
Renters and homeowners insurance policies are quite similar in how they work. They both provide replacement coverage for your possessions, whether you are at home or traveling. Both policies also cover any liability claims that you may face. For certain types of liability, you may need to have additional endorsements such as extra coverage for dog bites or accidents involving a trampoline.
Then How Do They Differ?
There is one big difference between these two types of policies. A homeowners policy covers all of your property, including your home and any structures. A renters policy only covers your personal possessions. Since you don’t own the physical structure, it won’t be covered in your renters policy. The liability portion of your policy will cover any accidents that occur within the portion of the property you rent. Any liability claims outside of your rented space will have to be filed against the landlord’s policy.
Should a Renters Policy Be Required by a Landlord?
Most landlords have started to require their tenants to have a renters policy in place before they sign their lease. If you plan on renting an apartment, it’s a good idea to find a renters policy before you fill out the application for your new apartment. Make sure to share a copy of your renters policy with your landlord. Even if your landlord doesn’t require you to have a renters policy, it’s a good idea to invest in one to protect yourself. It will ensure that you have coverage even if your landlord does not.
Protect Yourself First!
Always be aware of what your policy covers and ask questions if you have any concerns. Keep an inventory list of what you own no matter what type of policy you have. Both renters and homeowner’s policies are meant to protect you financially. It’s important to have the right amount of insurance coverage to protect all of your items, including the more expensive ones. If you are moving to a rental after owning a home or moving to a home after living in a rental, you need to make sure you have the right type of coverage in place during the transition.
Buying a home and moving from a rental means changing from one type of insurance policy to another. Work with a reputable agent and have them go over your policy with you. Contact our team at Pierce Insurance Group to learn more about the different types of policies that are available.